Customers of Manila Electric Company (Meralco) can expect some relief this January, as the power retailer announced on Monday, January 9, that electricity rates are projected to decrease due to improved supply conditions and reduced generation costs.
This decrease comes after a P0.1048 per kilowatt-hour (kWh) increase applied in December 2024, which raised Meralco’s overall rate for a typical household to P11.9617 per kWh, up from P11.8569 per kWh in November 2023.
“Indications show a possible decrease in generation charges in our customers’ bills this January,” said Meralco spokesperson and head of corporate communications Joe Zaldarriaga.
“We expect this month’s lower generation charge to lead to an overall rate reduction for January,” he added, without providing the exact figures.
Zaldarriaga further explained that while not all cost components have been finalized, initial estimates suggest an overall decrease in electricity rates for January 2024.
The anticipated reduction in power rates is largely attributed to lower Wholesale Electricity Spot Market (WESM) prices. According to Meralco, the drop in WESM costs results from an improved supply situation in the Luzon grid, with both average peak demand and average capacity outages decreasing during the December supply month.
Adjustments in future bills
In addition to the expected decrease in generation charges, Zaldarriaga also addressed upcoming adjustments.
He noted that 70% of the ancillary services costs incurred by the National Grid Corporation of the Philippines (NGCP) will be reflected in February 2024 billing. This will lead to the following rate adjustments:
- A P0.12/kWh increase for Luzon consumers, which will apply for three months starting January;
- A P0.12/kWh increase for Visayas consumers, which will apply for six months starting in January; and
- A P0.03/kWh increase for Mindanao consumers, which will apply for three months starting in January.
However, Zaldarriaga also highlighted that the Energy Regulatory Commission (ERC) has mandated private utilities like Meralco to refund regulatory rate reset fees that were charged to consumers over the years.
As a result, Meralco customers will receive a P0.23/kWh refund, which will be reflected in their February 2024 billing. (TCSP)
